Beijing has signaled that it is prepared to endure a long and debilitating trade war with the United States, after President Donald Trump announced an additional 10% tariff on $300 billion of Chinese imports following meetings in Shanghai between his top trade officials and their Chinese counterparts.
China's decision to let the RMB depreciate past the 7.00 mark rebukes Trump's insistence that China boosted exports by manipulating its currency.
By allowing the RMB to absorb the strains of the latest trade war round, the People's Bank of China protected the local market.
China's chip designers may start a price war to seize market share in Asia and push their American competitors out of the market.
China evidently believes that its economy will weather another year or two of trade war as well as it did during the past year.
Most of China's economic indicators are stable, and raising at an annual rate of 5%-10%, after a year of trade war.
China will fight rather than fold, which leaves President Trump with no easy alternatives.
https://pjmedia.com/spengler/trade-wars-the-empire-strikes-back/
China's decision to let the RMB depreciate past the 7.00 mark rebukes Trump's insistence that China boosted exports by manipulating its currency.
By allowing the RMB to absorb the strains of the latest trade war round, the People's Bank of China protected the local market.
China's chip designers may start a price war to seize market share in Asia and push their American competitors out of the market.
China evidently believes that its economy will weather another year or two of trade war as well as it did during the past year.
Most of China's economic indicators are stable, and raising at an annual rate of 5%-10%, after a year of trade war.
China will fight rather than fold, which leaves President Trump with no easy alternatives.
https://pjmedia.com/spengler/trade-wars-the-empire-strikes-back/
No comments:
Post a Comment